BCIMC, PAI kick off Refresco offer

Greg Gille
23 January 2018

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British Columbia Investment Management Corporation (BCIMC) and PAI Partners have launched their recommended cash offer for listed soft drink and fruit juice bottler Refresco Gerber.

Unless extended, the €20-per-share offer for the bottles business will expire on 19 March. It would value Refresco in the region of €1.6bn (8.5x EBITDA).

The board of Refresco recommended the offer; shareholding board members and a number of other "major" shareholders committed to selling 26.5% of the company's shares, the company said in a statement.

According to the offer memorandum, PAI would invest via its €3.3bn PAI Europe VI fund.

PAI's initial non-binding €1.4bn takeover proposal of Refresco was rejected by the Dutch business in April last year. The board members of the company reviewed the proposed terms and conditions and did not accept the offer. PAI and BCIMC made a renewed approach in October.

Refresco is a bottler of soft drinks and fruit juices for retailers in Europe and the US. In 2016, the company had revenues of approximately €2.1bn. It was founded in 1820 and is headquartered in Rotterdam, employing around 5,500 people in Europe and the US.

In 2010, 3i acquired a 20% stake in the Dutch beverage manufacturer in an expansion deal valued at €84m. This was the second time 3i had invested in Refresco: 3i acquired a stake in the company in October 2003 during a management buyout of Refresco Holding from a syndicate of private equity investors comprising Hay Hill Capital, NeSBIC, Livingbridge, CBG Commerzbank and Capiton. The deal was then valued at €310m.

In 2006, 3i sold its stake in Refresco to FL Group, Vifilfell and Kaupthing in a deal valued at €535m.